|Statement||Ontario Ministry of Treasury and Economics.|
|The Physical Object|
|Pagination||iii, 15 p.|
|Number of Pages||15|
The oil rent statistic gives us some scale by which to judge the potential impact of a prolonged downturn in crude oil pricing on a given country's economy. Although a sharp decline in oil pricing would certainly negatively impact the oil-producing regions of Canada, the impact would not be seriously detrimental to Canada's overall GDP growth. Canada has the kind of energy resources other countries envy. With energy demand set to increase 30 per cent by , we have an opportunity to provide responsibly produced oil and natural gas to meet that demand while driving job creation and economic growth here at home. Total economic impacts from investment and operations of Canadian oil and gas projects contribute to economic growth and employment in both countries. Capital investment of CAD$ billion and operational revenues of CAD$ trillion from Canadian oil and gas projects over an year period will generate CAD$ trillion in Canadian GDP and 6, thousand person-years in . Economic Impacts of Oil and Natural Gas. economic growth and quality of life #1: The oil and natural gas industry is the largest single private investor in Canada; , jobs (direct and indirect) This magazine website is published by the Canadian Association of Petroleum Producers as part of an ongoing dialogue with Canadians.
According to the pundits at The Canadian Press, it wasn’t the giveaway of Canadian oil to Americans for tens of billions of dollars below world prices, caused by a lack of pipelines from Alberta. It wasn’t the loss of tens of billions more in oil and gas investment to the US, because Canada is too hostile to building new projects. However, the collapse of oil prices in , along with the growth of renewable energy sources, has left many oil field workers out of a job. Oil and gas industry impacts on Canadian economy . For instance did you know the oil and natural gas industries account for more than , direct and indirect jobs across Canada? Or that the province with the highest economic benefits outside of Alberta is British Columbia at $ billion? Check out the CAPP website for more information. We’ll explore the impact to the U.S. economy during. Economies dependent on oil and minerals have borne the full brunt of the price drop, but even mature, diversified economies such as Canada’s have trouble dealing with the consequences of an
The oil and gas sector is large, important and ubiquitous in the Alberta economy. In particular, the natural gas sector has grown in importance with production doubling since the mids. Almost a third of the natural gas output is “sour” gas; that is, contains levels of hydrogen sulphide (H 2 S) that imposes potential health risks. Economic Impacts of the Natural Gas and Oil Industry. The natural gas and oil industry is a critical part of the U.S. economy. In , these energy resources supported million jobs and contributed more than $ trillion to the U.S. economy. The strong correlation between the Canadian/U.S. dollar exchange rate and oil prices is due, in large part, to the amount of the nation’s total foreign exchange earnings that are garnered. The price for gas increases by % and %, respectively, in the two scenarios. This is because demand for gas reduces at higher rates, while the supply of gas also reduces at relatively high rates. The effects from the supply side outweigh the effects from the demand side, leading to a slight increase in the price for gas in the two scenarios.